Case Law Details
Corporate Engineers and Associates Vs State of Odisha (Orissa High Court)
Orissa High Court held that 150 HP Fully Automatic ATS (Auto-Transformer Starter) Control Panel, Motor Starter Panel Board and other Control Panel is comprehended in the term “accessories” under OVAT Act which attracts a rate of tax @ 4% for the tax periods prior to 01.04.2012 and @5% for the tax periods commencing from 01.04.2012 to the periods of assessment.
Facts- M/s. Corporate Engineers and Associates, a partnership firm, has approached this Court invoking provisions of Section 80 of the Odisha Value Added Tax Act, 2004 assailing the Order passed by the Odisha Sales Tax Tribunal in Second Appeal partly allowing the appeal filed by the State of Odisha-opposite party against the Order d passed by the Deputy Commissioner of Sales Tax (Appeal), arising out of Assessment framed vide Order u/s. 42 of said Act, 2004 read with Rule 49 of the Odisha Value Added Tax Rules, 2005 by the Sales Tax Officer, Bhubaneswar-I Circle, Bhubaneswar about the tax periods from 01.04.2011 to 31.03.2013.
The assessee-petitioner being a registered dealer under the Odisha Value Added Tax Act, 2004 (OVAT Act) carries on its business in manufacturing and trading of electrical goods and equipment for industrial use, electric generator, pump sets and their spares and accessories etc. This apart, it is engaged in supply, erection, installation and commissioning of contract work.
Being selected u/s 41 of the OVAT Act, tax audit was conducted and Audit Visit Report was submitted to the Assessing Authority-Sales Tax Officer, Bhubaneswar-I Circle, Bhubaneswar, Assessment u/s. 42 was framed taking into account observation/objection contained in the Audit Visit Report inter alia that the petitioner-dealer had misclassified the item, namely 150 HP Fully Automatic ATS (Auto-Transformer Starter) Control Panel, Motor Starter Panel Board and other Control Panel (“ATS”), as a result of which there was a short levy of value added tax. The Assessing Authority has raised a demand of tax to the tune of Rs.52,517/-. Besides demand of tax, the Assessing Authority imposed penalty twice the amount of tax so assessed invoking provisions of sub-section (5) of Section 42.
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